The SBI Mutual Fund, which takes its name from the State Bank of India, has been in operation for eighteen years and boasts more than two million investors. With 30 active funds, or schemes, within the SBI mutual fund itself, the company offers a variety of strategies for investing. The following will give you a general idea of how to invest in SBI mutual funds.
Decide how much you'd be willing to invest in a mutual fund, both initially and on a monthly basis. Don't plan on investing more than 10 percent of your overall investment portfolio.
Look over the online information on the SBI Mutual Funds website on each of the funds. From the "Products" tab, choose between Equity Schemes, Debt Schemes and Balanced Schemes.
Take the SBI Mutual Funds' Invest Test online to see which fund they suggest for you. From the "Learning Center" tab, select "Invest Test" and answer each question as honestly as you can.
Choose the SBI mutual fund scheme(s) that sounds the best to you. This may or may not be the scheme the Invest Test recommends for you.
Order the prospectuses for the funds you're interested in and read them thoroughly. Note any service fees charged.
Compare fees, projected profits and performance charts for each prospectus you have.
Look up the SBI mutual fund's risk level as calculated by Morningstar.
Select the SBI mutual fund you are most interested in, and download the appropriate application form. All forms are available by clicking on the "Downloads" tab on the home page.
Submit your completed application to the SBI investment office listed on the application.
- Make sure you have a good understanding of your financial goal for investing: Is it for an upcoming purchase? Is it a long-term investment for retirement? Is it for a medium-range investment such as your child's college fund?
- Take advantage of the planning tools on the SBI website, even if you don't end up investing with SBI.
- Mutual funds are a wise investment for those who seek a medium- to long-range payoff. They are not the answer for those looking for a quick payoff.
- Consult as many outside objective sources as possible for analysis of any particular mutual fund.
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